Connecticut Bankruptcy Law Blog

As many Americans struggle to keep up with their credit card debt, mortgage and other expenses, a number of people are forced to file for bankruptcy as a last resort. The most common cause of bankruptcy, however, is related to medical debt. Many people in Connecticut and across the United States can no longer keep up with extensive health care expenses. It is reported that one in three families in the U.S. struggle to pay for medical treatments, racking up credit card debt and draining their bank accounts in the process.

One reason why medical expenses have mounted may be the issue of high deductibles, copays and premiums. People are forced to pay high premiums to receive their insurance coverage, but then must pay a high out-of-pocket deductible before the insurance plan starts to cover anything. Furthermore, there are co-pays during that time and even after the deductible has been met.

When Connecticut residents realize they are overwhelmed with credit card debt, they may sometimes feel like this debt will never go away. However, there are several strategies people can use to remove this debt.

If people want to get out of debt, it is a good idea for them to understand exactly how much they owe. Time magazine says that people should typically sit down and create a list of how much debt they have on each credit card. This list should also include the interest rates so people know how much they are spending on interest each month. Once they have made this list, people may want to look at their budget so they know how much money they can put toward paying off their debt.

If you have filed for Chapter 13 bankruptcy in Connecticut and went through the process of setting up your plan, then you are now ready to put the plan to use. What you do after you file is very important. It will greatly affect your finances and your business if you do not follow the plan. The US Courts notes there are a few things that you need to keep in mind as you continue forward in the bankruptcy process.

The most important thing you have to do is make your payments on time. This should be very easy to do because payments should come directly through payroll deductions. If you miss a payment, you could face serious issues with your case and face liquidation of your assets.

At the Law Offices of Charles A. Maglieri in Connecticut, we see an ever growing number of senior citizens coming to us for help in filing bankruptcy. As the New York Times recently reported, if you are 65 or older, your inadequate pension and personal savings, plus the rising costs of medical care and prescription drugs, may have put you in the position where bankruptcy is your only realistic option. A recent study shows that seniors such as you represent 12.2 percent of all bankruptcy filers today. In 1991, seniors represented only 2.1 percent of filers.

Unfortunately, the dream of one’s senior years also becoming the golden years no longer applies to the majority of Americans. Many factors, including the following, have made it impossible for today’s seniors such as you to retire in comfort:

• Extensive debt
• Little or no savings
• Medicare coverage gaps
• Skyrocketing medical costs
• Longer waits for Social Security benefits